It is been a bit more than one month that I have been actively trading crypto on a daily basis and what a steep learning curve it's been.
Firstly I want to mention that the time I have spent in the Crypto industry, which started in June 2016, is probably the most exciting time I had since the dotcom boom way back in the early stages of the internet. I just love the people, the way they think, and the brotherhood of the traders. It is difficult to find your way in, but when you find the appropriate slack group and make some friends it is just wonderful, which brings me to some more lessons I've learnt over the past few weeks.
Stay where the volumes are
As I learnt more about the various exchanges, chatting to guys in Slack groups, it is clear that your safest bet is to trade where the largest volumes are. If we look at the image below, we can see that the column indicating the volume, and ETH, DASH, STR and BCH are clearly the highest volume trades in the past 24 hours. The volume is important to ensure that there is liquidity and a lot of traders buying and selling the specific crypto coin. This means that there is usually good fluctuation in the price, which means you can easily make between 3-7% on a trade.
Do your research well.
In my opinion the Crypto Trading industry is maturing every day. More and more people are joining the industry, which means that more real world money is being invested in the crypto world. This means the overall market cap of crypto is growing and there is more money to be made or lost unfortunately. I have learnt that there are two specific things which will attract the volumes to the specific coin.
News about the coin
I am following various Crypto News bulletins which helps me to identify, which coins will attract more volume of trading. When any news is released about a specific coin, this will attract the volumes in either or a good way. Bad news, will attract many sellers, and good news will obviously attract many buyers.Project releases and upgrades
When a project release new features or upgrade their platform, this is usually a good indicator that the volumes will come to trade the specific coin. When a project delivers specific features as per the roadmap on time, it usually have a positive effect on the purchase volumes just before the announcement.
General
The past week saw Bitcoin get to new all-time highs going for around $11 000 across exchanges across the world. This is a massively positive thing for the crypto world in general as more real-world money is entering the crypto world. It did influence the trading scene a lot as it currently feels like a lot of people are holding more Bitcoin and less alts, which in turn ensured that there is not that massive volumes in Alt Coins at the moment. The past few days, was therefore very boring to say the least. I am currently holding a range of Coins, but all the alts I am in is struggling to raise to the levels I purchased.
One principle that I have adopted after speaking to an experienced trader, is to NEVER sell a coin for less than you purchase it at. All alts will have their day at some point when you can sell the coin for a bit of profit.
Happy Steeming !
I agree with you but above all one's patience, dedication and execution is far more important.
That is definitely very true @vindy... Thanks for the comment
Sorry for the link drop; however, specialization is to me as important as patience.
https://steemit.com/bitcoin/@pawsdog/how-many-coins-you-need-to-get-fucking-rich-yeah-baby
** Ooo , Dear You learnt well...Last point we all must remember...GoodLuck for your future trade**
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Thank you very much @rajag234 ;)
Good read thanks.
What coins did you start with?
Any exchange / wallet recommendations / experiences?
Hi @fred777bear,
I started buying ETH and BCH, then we had that massive jump in BCH price ;) did well with this those. I am currently only using Bittrex and Poloniex and the experience is good until now. I see the guys are experiencing problems in Kraken and Coinbase other exchanges when there is extremely high volumes.
Thanks for good info. I'll have a look
Happy Steeming ! Crypto is the future.
I appreciate this knowledge. I am a beginner in the world of cryptocurrency as far as investing, even though I've been watching bitcoin for about a year now. What do you think about litecoin and ethereum? Growth?
cool information bro,
I ve been trading cryptos since Januar'17, and loving it so far.
Ofc it's easy to make money in the bull market, but also with that crazy volatility and pumps/dumps it is great experience so far.
Like I say: It's 30% TA + 70% gut feeling and gambling.
Firstly I was trading almost any coins, in any markets,.... then I was moving into higher volume coins, with good reputations and better management teams. So the price fluctuations wont be that great.
It is indeed interesting and as you say... It's 30% TA +70% gut feel.. I just love it because that is exactly what it is at the end of the day ;) Thanks for your comment.
Thanks for taking the time to write. I'm just getting into the crypto trading market - trying to learn market trends etc.
Do you look at any other aspects of the market other than volume or is that your primary focus when trading?
It is a pleasure, I am thinking to write a series on trading for beginners or in laymen's terms. I am sure it will help a lot of potential traders. I is really not that difficult. For now, I suggest you join a slack channel... Someting like CryptoMinded, as you will pick up a lot of tricks and tips.
PS: There is a lot of other things to look out for, but Volume is your safest bet. There is also a lot of good YouTube videos for beginners ... will give you a good start
I will def check out CryptoMinded. Thanks for the tip :)
Hey @jacor I am thinking to write a series on trading for beginners or in laymen's terms... I appreciate your post 👌👍
Thanks for your comment @myeasin
Thanks for your reply you're really kind
Thanks a lot for the advices. That one with selling an altcoin with more than you spent on it would have been very useful for me a week ago when I sold my precious ADA and it tripled its price after that...
Yip, we all get some coins stuck at some point and the it is a decision if you want to take a loss to get some money to trade. At this point, the decision is always NO, don't sell, the alts day will come.
i will follow those lessons that you have just share as this field is quite new to me and learning along will benefit a lot
Really enjoyed reading, at least I understood something. Thank you, for sharing.
@jacor I have been investing/trading for nearly 20 years and what I can tell you about the current crypto market is just buy on dips until the crypto bull market ends (which is likely 1, 2, or more years away)
Anytime you see a 20% or more dip, it's buy time. Its more swing trading then day trading, but I have no desire to day trade. Did that full time for 5 years and being glued to the computer 24/7 gets exhausting.
Thank you for this information. Patience and knowledge.
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Thanks for sharing! As someone new to the crypto world, this was rather insightful and something of value for me. Giving a follow to read up on more content- Respect
Awesome post! I am trading from 2016 and i totally agree with your points. Holding your alt coins will never do harm, every coin has its day. so be patient and update yourself on daily basis.